Japan’s $1.2 trillion Government Pension Investment Fund will increase its allocation target for local shares to about 25 percent from 12 percent, the Nikkei newspaper reported without attribution. GPIF will also boost its holdings of foreign bonds and stocks to about a combined 30 percent from 23 percent, while reducing domestic debt to the 40 percent level from 60 percent, the Nikkei said Oct. 18.
- The Bank of Japan (BoJ) prints money.
- It uses the money to buy government bonds (domestic debt, above).
- The Government Pension Investment Fund sells its government bonds to the BoJ.
- The Government Pension Investment Fund uses that money to buy Japanese stocks.
- Stock prices rise and everyone feels wealthier.
Is there such a place any more?